ZPIN, A Black Horse

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Sep 12, 2014

I made an investigation by calling four groups of job-related friends in China before Q2 earnings were released. The friends I called were located in Beijing, Shenzhen, Fuzhou and Shanxi, which represented different areas of China. To my surprise, 100% friends recommended Zhaopin (ZPIN), while only 25% recommended JOBS. Energized by new CEO Evan Guo's great leadership and market expanding strategies, ZPIN is becoming the most popular provider of online recruitment services in 1.3 billion population's market. JOBS is the largest provider at present. However, ZPIN is on the way to winning its gold medal. Lots of investors worry about the economic slowdown in China. I was from China and I am not concerned about it. 7.5% +/- annual GDP growth is still an amazing number for a world second largest economic entity. The slowdown reduces opportunities for blue collars. In fact, China has increasingly strong demands for white collars that will greatly broaden the market for ZPIN. The strong Q2 earning report is a proof of ZPIN's achievement. By today, all insiders hold their shares tightly and sell not a single share of stock, which shows their confidence. To my research, ZPIN will reach $32 in six to nine months, and will reach $60+ in one year. ZPIN is a black horse to value and growth investors.